HYDERABAD: Finance Minister Mallu Bhatti Vikramarka presented the Budget for 2026–27 with an outlay of Rs 3.24 lakh crore, placing emphasis on welfare and development despite financial constraints. Allocations were made for existing flagship schemes, while nine new initiatives were announced covering employees, students, youth and household security.
The most prominent among the new measures is the Indiramma Family Life Insurance Scheme. Announcing the scheme, Vikramarka said that it would be implemented from June 2 and provide life insurance cover of Rs 5 lakh to each of 1.5 crore families in the state. The deputy chief minister allocated Rs 4,000 crore for this scheme.
He also introduced a breakfast scheme for students from pre-primary to Intermediate, besides a midday meal scheme for students pursuing Intermediate education in government junior colleges. Apart from these, the other new measures included the Telangana Public Schools, a Cashless Health Protection Scheme for employees, an Employees’ Accident Insurance Scheme, the CM Overseas Employment Programme, scholarships for ATC trainees, and sanction of two lakh new pensions under Cheyuta.
Of the total outlay of Rs 3,24,234 crore, revenue expenditure is estimated at Rs 2,34,405.82 crore and capital expenditure at Rs 47,267 crore. The capital outlay marks an increase of Rs 10,786.41 crore, or 29.5%, over the revised estimates of 2025–26. The remaining expenditure gap is to be met through loans and advances of Rs 19,536.01 crore and capital disbursements of Rs 22,924.89 crore.
Revenue receipts are estimated at Rs 2,41,263.58 crore and capital receipts at Rs 82,970.42 crore. The Budget for 2025–26, initially pegged at Rs 3.04 lakh crore, was revised down to Rs 2.81 lakh crore, a decline of 7.56%. The current outlay reflects an increase of 6.15% over the Budget estimates and 15.3% over the revised estimates of the previous year.
The deputy chief minister projected a revenue surplus of Rs 6,857.76 crore and a fiscal deficit of Rs 58,458.71 crore. While grant-in-aid from the Union government was budgeted at Rs 22,782.5 crore in 2025–26 and revised to Rs 11,161.45 crore, it is estimated at Rs 24,116 crore for 2026–27. Non-tax revenue is projected at Rs 35,730.2 crore, compared with a Budget estimate of Rs 31,618.77 crore and revised estimate of Rs 11,161.45 crore in 2025–26.
The state’s outstanding public debt under FRBM limits is estimated to rise from Rs 5,03,905 crore in 2025–26 (revised) to Rs 5,62,363 crore in 2026–27. Outstanding government guarantees stand at Rs 3,01,835 crore. Combined liabilities are projected at Rs 8,64,198 crore by the end of the next financial year, with total debt at 29% of GSDP.
Despite allocating Rs 50,713 crore for six guarantees, the Budget did not mention timelines for certain promises, including Rs 2,500 monthly assistance for women and enhancement of pensions to Rs 4,000 under Cheyuta.
Describing the Budget as a “lamp of hope for the people of Telangana”, Vikramarka said it was framed to balance development and welfare without placing additional tax burden on citizens. He added that the state was progressing despite financial pressures and was laying a strong economic foundation.